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Chicago 28, U.s. 17, Detroit 14, Us 11, Washington 9, Sony 9, Cbs 8, Dennis 8, Cheryl 7, Europe 7, Dell 7, Hp Moonshot 6, Charles Payne 6, Yemen 6, Washington Post 5, America 5, Phoenix 5, Dennis Kneale 5, Dan Loeb 5, Adam 5,
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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    August 6, 2013
    11:00 - 1:01pm EDT  

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jobs? >> fair point. dagen: glad to see you back, i love charles, who we'll see shortly. the u.s. military evacuating 70 embassy personnel from yemen, and form, cia agent, mike baker, on fighting terror. newspapers are the new trophy wives for the soup ire rich. that's what we say. jeff buys the washington post, but will this be a lasting marriage? actor george clooney calling out hedge fund manager dan lobe saying he's a greedy carpet bagger who doesn't know what actors do. a scandalous affair, one guest says that's what lawmakers did by opting out of obamacare before they went on vacation. all of that and so much more coming up this hour on "markets now." ♪ dagen: newspapers are the new
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trophy wives of the super rich and probably cost less money than women. first, the markets, dog days of summer giving investors little to trade on, but we have a market deep in the red right now, and look who is at the new york stock exchange. that's adam. >> hey, dagen. dagen: hey, adam. >> down 137 points on the dough, blame ibm. winners, though, three in the green, and disney, getting earnings later today besides the stink-a-radiobomb, "lone rangers" but the s&p a different story, fossil with a great day at the s&p, even though we broke below 1700, shares up 17%, washington post set a new high, up 4.6%, and beers up 4.4%. back to you. dagen: did ashton kutcher ring
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the opening bell this morning? >> he did. and our producer did all she could to run there to get a photo with him. dagen: sure she did. he's not that great, but i brought it up because he's in the new season of -- >> [inaudible] dagen: exactly. thanks, adam. the state department ordering the evacuation of 70 nonessential u.s. embassy personnel in yemen urging all americans to leave that country. following an al-qaeda attack threat that's triggered temporary shutdowns of 19 posts across the middle east and africa. joining us now, mike baker, former cia vo vert operations officers and co-founder and president of diligence. hey, mike, good to see you. >> thank dagen: what about u.s. reaction by the evacuation of the personnel, the warning throughout august. is it too much? is it an over reaction potentially in >> well,
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obviously, the intelligence picked up is credible. the concern i've got is not so much that they are going through the process now of shutting down facilities temporarily or evacuating nonessential personnel, although they are standard procedures, and you always have to assess incoming intelligence, look at the material picking up whether it's from sources, human sources, or communications, an assess it in the terms of acting upon it it immediately, raise the terror alert, shut a facility, and that part of it is a normal calculation. the part that has me a little concerned, and maybe i'm cynical, is the idea that, you know, because of benghazi, perhaps this current administration is a little bit politically sensitive, and they understand the political damage from another incident overseas # or domestically, of course, other than the tragedy that would raise. dagen: mike, does it also trouble you in a way about how much they revealed on the communications that have been intercepted? >> no, absolutely.
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we seem to be unable to -- whether it's individuals in the intelligence, military, or the white house, to just honestly just shut it, and not provide information to al-qaeda and extremists that they don't need to have. as an example, this current threat, now, they released information saying, well, the reason why we go through the measures is because we intercepted a call between the head of al-qaeda and the al-qaeda in the arabian peninsula, aqap, a strong presence in yemen. we don't need to release that information because baa gives them an understanding what our kates are and what rewith doing. i'm afraid this political concern, the sense icht over benghazi, the phoney scandal, according to the white house, maybe drives their desire to release more information than necessary to show they are on
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top of it. dagen: to that point, be careful how much you crow about. it was a big victory for the united states, the death of bin laden, but you have to be careful how you talk about al-qaeda's on the run; right, mike? >> right, absolutely. the previous administration, the current administration, they are guilty of it. they just can't help themselves; right? particularly in the run up to the last national election. yeah, the vice president, biden, the president obama out there talking about how, you know, we're welcome there. we got him on the run, you know, close to victory. just stop it. there's no need for any u.s. leader to talk about that because it's not going to happen. this is not a zero-sum game or al-qaeda we're concerned about, but radical is line up, jihadists, however you refer to it, it's not going away. it's no good to stand there and crow about it. dagen: good to see you, safe travels, good to see you, be well. >> thank you.
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dagen: paying a quarter million dollars for the washington post, and that's just walking around money for a billionaire like bezos worth $26 billion or so, but it's good news for the stock. what about the future of the company? dennis is here to tell you. hey, dennis. the post stock up 6% right now, up 4.5% or so when i checked minutes ago, and think how sad that is. the washington post talk is popping because of getting rid of the name sake newspaper. watergate, one the newspapers owned for 80 years, so is bezos buying for the bottom line or financially, circulation of the paper down 40% in ten years. revenue down 30% or so in that same time. dagen: seven years in a row. >> yes, lost $50 million last year, on the other hand, bezos pays less than half of revenue. he's paying $250 million, and revenue's over, you know, 580 million, but what is he buying? he wants to experiment, which
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could be cool, but terms of the deal require him to keep in place katherine, the granddaughter of the legendary watergate fame, keep in place the president, the editor in chief who once turnedded me down for a job at the l.a. times, and what do you do about that? dagen: we don't carry grudges in journalism, no. >> a great editor, but they are part of what was sliding, and you wonder who bezos will do. he doesn't want to be involved day-to-day, maybe he should. dagen: it is a sign the grand family got out while the getting's good. i mean, this message says, there's no way for us to significantly turn this business around. >> exactly. the tribune company spins off paper entirely, spinning off tv stations, buying up 20 new tv stations, basically, and you got 21st searching ri fox that held on to the print properties, and so these billionaires come in,
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buying up the -- it's like to use, i guess this is now politically incorrect phrase, but putting the eskimo out to sea, that's what they are doing. dagen: the new trophy wives. >> yeah, bailing them out, a big piece of that, the l.a. times, this coveted gem that's been looked at by the path mark billionaire and the coch brothers, oh, they could be a conservative voice, and david also interested, and mayor bloomberg, he may be interested in the "new york times" once he's out of office. dagen: would be interesting. >> yeah, buying clout in washington. dagen: it will be interesting because he's been kind of politically in the background, contributing to the pack at amazon, which, basically disperses money evenly between democrats and republicans. >> does it? dagen: yes. interesting to see what he does, but he remade retail and how we
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read books. >> so you're excited. dagen: that was what i was getting across this morning, i'm excited because maybe he turns around, and i love getting ink on my hands. >> employees like it. there's tweets out there saying, thank you for selling. they said the decency of jeff bezos. now, remember, when they sold news week to the billionaire, side, and news week is no more. >> i know. at least the washington post lives on for now. >> exactly. dagen: thank you so much. we'll see you later in the hour on something totally different. meantime, spain real estate investor knows thing about owning a newspaper to be on with neil cavuto tonight at 8 p.m. eastern, fox business. this, a new survey finds -- this is a problem for the washington post, how people get their news, twitter, a new survey finds one in five -- nearly one in five u.s. adults on twitter, according to a research center survey.
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twitter usage for adults up 2% from a year ago to 18%. they find 30% of users are under the age of 30. the social networking feed is still far behind facebook when it comes to users, though, with reports back in february saying 67% of u.s. adults go online and visit facebook, but twitter is more useful. apple, offering a discount on the chargers for the next two months in effort to replace third partyychargers after a chinese woman was allegedly electrocuted from using one-third party charger last mornt. in order to get the discount on the charger selling for ten bucks, customers must bring this their third party charger to be disposed of as long as the apple device. the replacement charger covers iphones, ipads, and that is it. it starts friday and runs until october 18th. let's look at apple shares, down
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more than 1%. actor george clooney slamming big money investor dan loeb, calling him a carpet bagger related to efforts to break up sony. getting excited about stocks? many people, they pull money out of fixed income, out of bonds, to put in cash, not the stock market. we're going to ask charles payne to make an argument for why stocks should be and are exciting. no thank you. congress opts out of obamacare. how lawmakers got out of the president's health law right before they went on -- vacation. ♪ clients are always learning more to make their money do more.
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dagen: george clooney winning a temporary victory over dan loeb, but he's not backing down in the fight to spin off the movie and music business. liz macdonald on the kind words clooney had on loeb. >> like an epic war of the worlds block buster battle going on. sony shares dropping 5% in trading because of the news that sony will not take up loeb's
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idea to have an ipo of a fifth entertainment business. look at what clooney said about loeb. wow. he said, essentially, dan loeb, the hedge fund billionaire, knows nothing about the business, really blasting dan loeb saying there's no conscious at work. he's basically saying that the hedge fund industry gets bailouts calling loeb a carpet bagger, and that the hedge fund guys don't create jobs that we do. essentially, final point on the bailout, hedge fund invested in greece and the bailout there. also, you know, clooney's saying why are you blasting our industry, and when sony's done "sky fall" and "zero dark thirty," he said, listen, there's a bloated infrastructure, it as generous perks, high salary, sony flops "after earth," "white house down," and, you know what something? let me tell you something, the
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first two movies earned back less than half of the production costs. you know, less than -- i'm telling you, production costs are $280 million on those two movies alone, so where do we go from here; right? is it loeb going to get his way? he's not backing down. he is saying he's going to pursue further ideas and options with sony. he's saying that sony took a listen to what he had to say because sony had a statement saying, you know, we are trying to squeeze out synergies and trying to get more accountability and cut the bureaucracy. but tell you something, with sony down and four or 5%, market not liking they didn't listen to dan loeb. dagen: actors and producers love hedge fund managers when they fund productions, and when they invite actors on their yachts. >> not in my backyard; right? dagen: exactly, carpet bagger, hilarious. he's from kentucky, originally, he can say that, i guess. thank you so much, liz, all over the story.
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clooney and loeb should just sit down and have breakfast atta koa bell. the fast food company taking waffle taco national. adam, what are investors ordering today? >> the investors say, a waffle taco? they are expanding the test by yum brands, who owns taco bell, go national with breakfast next year. yum at $74 a share there, roughly, up 11% year to date. today, they are down, you know, about, not quite 1%, but it's this waffle taco. some say it's a great flavor, but a lot of people have questions about it. one thing, dow down 120 points on the dow. if we close down in triple digits, single biggest one-day drop since june. back to you. dagen: thank you so much, adam. give me reason to get excited with money moving out of bonds and into cash in some instances,
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tell me why you should buy stocks now. that'll be charles payne's duty coming up. is chicago the next detroit? we raise this question before, why the problems plaguing the windy city could lead down the exact same road. ♪ with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
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>> 2 # 1 # # minutes past the hour, your fox news minute. president george w. bush in high spirits today following a medical procedure. the 43rd president of the united states had a stint inserted to clear a blocked artery. the blockage was discovered yesterday during the 67-year-old former president's annual physical. concerns are raised again about the crippled fukushima plant in japan. the nuclear watchdog says the operator of the plant is trying to con tape highly radio active water seeping into the ocean creating an emergency situation. the plant suffered a nuclear meltdown following the 2009 quick and tsunami. finally, we know drinking and driving is dangerous, but how about drinking and walking? that's not so safe either according to new data on related fatalities. a third of the u.s. pedestrians killed in 2011 had blood alcohol
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levels above the legal limit for driving. those are the news headlines in the fox business network. get you back now to dagen. dagen: you can be sober in new york city and fall into a pothole. >> true, you can. dagen: not speaking from personal experience, but great to see you. >> bye-bye. dagen: yesterday, bob was on from vanguard, and we talkedded about bond flows, and he said, earlier in the year, the spike in interest rates, they saw that, but the trouble is the money was in the going into the stock market. it was going into cash, so give us a reason tooget excited about stocks here. for debate, chief executive officer at the financial, and charles payne, he did a special about this a couple weeks ago, why get excited about stocks? people worry, they want safety, and they worry about a market that is off its all-time highs, but close. >> close, and we've had
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something of a 9,000-point rally. he's what i worry about when people are encouraged to time the market or people tell me, you know, wait for the pull back. a, the pull back doesn't happen, and when it does, they are afraid of the market. essentially, they never get in, or if they do, they buy at the high. the market is something to be engaged in as a lifelong endeavor, not 100% invested, but one of the big stories is the selling of the washington post. dagen: right. >> okay. warren buffet started buying it in 1973. by 2004, he owned 1.7 million shares, average cost of $11 million. recent filings suggests he still owns that. if that's true, that 11 million is worth $1 billion today, a 9,000% return. they wonder how the rich get richer. they do it in a way so democktized anyone could do it watching the show. dagen: brian, in terms of the fear in investors, is it getting better in terms of the willingness to own stocks?
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>> that's a problem. after five years of it not going down, they say, well, maybe i should go a little bit in. you can't be a little bit pregnant. what you have to be is consistent in what you own and the truth is, there is not another place to put money if you can at least have a two-year horizon or three-year horizon. the markets are not cheap, at least the u.s. market, but it's not overly valued. the payout ratios now are about 30%. they are typically 50%, so there's room to pay out more to buy back stock, to have more dividends. it's very consistent, i think, the u.s. market. dagen: almost need to have a more basic conversation with people and talk to them about you own part of this company when you invest in the stock market, something we've discussed before about it's your choice, would you rather lend money to a company or the u.s. government, and, you know, how do we feel about how uncle sam spends that money, or would you rather have an ownership stake?
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be involved? >> or keep it under the mattress where it loses value every single year. a lot of people do that. money from bonds, in the last eight weeking, 140 billion into cash. you might sleep well at night, but the future is wrecked if you don't do something proactive. michael kor with a good report, we talk about that all the time, retailers down other than dsw. on the special i did, a young lady from new york bought her shoes at discount at dsw. the point is when people are in the market, they have one stock, 40% of people have one stock, think they that's in the market. a lot of times, they are chased out after one bad earnings reports. those common mistakes hurt people all the time. >> there's only one place to be right now, and that's stocks. if you're in cash, you are losing money, bonds will lose money in three to five years, have guts, have faith, do it right, and it's not -- the market's not cheap, but it's not expensive, and it's going to get
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better. that's the place you got to be. dagen: ron, charles, thanks. >> when we talked, we came back 20 # points. dagen: there you go. has nothing to do with, you know -- >> are you sure? dagen: yeah, positive, actually. charles will be back in a moment to talk about housing in the economy, and the president making a big fuss about the west, why go to phoenix when it's north of 1100 degrees there? that market is the hottest ones in the last year. that's why. lawmakers on capitol hill say the president's health care law doesn't work for them, so they are opting out. what to make of that is straight ahead. ♪
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dagen: here is what is coming up on markets now. washington is a ghost town but there is a lot of noise from capitol hill after lawmakers decided to opt out of the health-care law before they hit the beach. chicago's financial misleading workers to believe the windy city could be lying behind the ford for bankruptcy court. cbs chief scoffed at time warner cable's so-called olive branch calling it a publicity stunt. weak sales have investors -- charles disappointed the retail stock. what you watching? >> we are watching american eagle outfitters as far as abercrombie and fitch. they put out a warning about their profits for the second quarter and they are already
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down 15% year-to-date, stock down 17% but look at abercrombie and fitch, they are having a tough go of it down 6% call almost 7% and the biggest losers, second biggest loser on the s&p followed by j.c. penney, a period for all the retailers for back-to-school shopping but abercrombie and fitch and american eagle outfitters have a rough day. dagen: president obama heading to phoenix and on his agenda his new plan for housing finance. rich edson is at the white house with more detail on this. >> it is part of a suite of proposals of the it ministrations of about a couple years ago though they seem to be moving towards the more specific elements of this at least endorsing a more specific elements of all this. look what the administration planning on pushing out in phoenix the few hours from now basically winding down fannie mae and freddie mac reducing portfolios by 15% annually, private investors in any new system would take any initial
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losses government would step in to ensure against catastrophic losses. there would be under the new system move toward widespread access to 30 year mortgages according to the administration and the government would collect actuarially fair premiums, higher premiums and in a familiar theme the administration wants congress to get moving. >> the real story is you look at this a few months ago many people said we can't move forward on this based on good work that has been done on a bipartisan basis we see real momentum in creating housing finance system for the future and that is something the president wants to encourage and work with congress to do that. >> the momentum is talking about a senate proposal. on the house side with the house financial services committee chairman spokesman for the committee says the president has been absolutely a wall on housing reform but this is the first time he will talk
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extensively on the topic since the state of the union in february. this is an exercise in i didn't forget about that part of my speech. dagen: thank you for that. rich edson in washington. what do you make of this, charles payne never left the studio, sitting right here since the start. these think this does any work? charles: it is one of these weird things where this president will take a victory black but also say we need to take a lot of work. we have this housing recovery but it is not a main street phenomenon and this is what we need to be honest about. first-time home buyers of not materialize, largely from overseas a lot of investors, morgan stanley started to fund billions of dollars from china, but people still complaining about the ability to get loans and people are afraid. the bottom line is yesterday the fed came out with their surveys, senior loan officers, 52% of bank said moderately stronger
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demand whereas their standards only eased 10%. the president wants to get in and force a 5% down payment and the presidents wants to talk about responsible lending to the community and somehow suggest that the grand bargain for the middle class is homeowner should and banks play a role in this so maybe it is part of the public domain but it all sounds like community reinvestment act repackage. dagen: how much credit does the government and the white house for the housing recovery, what recovery? some people have benefited. most of the credit will go to the federal reserve for keeping interest rates as low as they are and you have for many of you don't get credit for that and fannie mae and freddie mac took them over and the majority of loans in this country are touched by it. charles: 100% of credit, 50% goes to the fact that houses are oversold. we went through a panic, someone cried fire and we went out and
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destroyed the housing market and the stock market and the next 50% i will give 35% to the federal reserve and the rest an assortment of things from big investors to maybe fannie mae and freddie mac. dagen: why go to phoenix? charles: a nice turnaround but it is tough when the president tries to do too many things at once, when i'm done with this particular thing, it we still have work to do. forget about but victory lap. more or less move out of the way because you keep pushing the private sector route it is will be harder to make the recovery is slower than they should be but the good news is one thing, moderately stronger demand may be mean street will take the bait. my lucky day. dagen: get out of town, my pleasure, thanks so much charles payne. we will talk obamacare.
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lawmakers decided that is not really working for us the way it was written and before we went on vacation. general motors cutting the price of its electric chevy volt hoping to boost sales for the car. is it a good deal? that $30,000? and frustrated with time warner cable's latest offer calling it a publicity stunt. dennis kneale will be back and we will talk about low interest rates, they popped up in the spring, ten year yields still 3%. ♪
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lori: i am lori rothman with your fox business brief. the trade deficit narrowed sharply to $22 billion. that is a 22% decline for may and the smallest since october of 2009 would the cut in the federal reserve on buying program that come later this year. in an interview, possibly by september but depends on job creation and a gdp and prepared to delay or considered capering economic data. americans are keeping water, the research firm says the average age of the two forty-seven
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million is eleven.4 years and that is a record since we started to track vehicle age in 1995 and that is the latest from the fox business network giving you the power to prosper.
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dagen: congress deciding to opt out from part of president obama's health-care law right before they went on vacation. john brown of euro pacific capital is calling the scandalous. john joining us from florida. why is this scandalous? is a slim part of the overall health-care law, is it not? >> the whole obamacare is part of the evidence of financial repression and the actual act itself having of privilege state in 9 of view, complete contempt
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that congress has, for the american people and they are not going to attend many town hall meeting this summer and a sign that nancy pelosi said that we don't know what is in there before we find out or worse than that affect and complete disregard for democracy. these people should give us the fourth rate expensive health-care system with declining skills and doctor coverage and opt out of it for themselves is a scandal. dagen: i had someone say to me not long ago the other day this is inevitably going to be a huge, cute benefit, and people who can come into the government can't explain how health insurance works, and if you get care that isn't as good, lose
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the availability of doctors, and they go up because of this and a huge benefit. all, the the american people are going to get mad about this and that is the only thing that will change it. >> they are already mad but politicians are opting out of going into down all meetings. and not just people mad for those reasons which you rightly say but bad for business and huge uncertainty and complexity of this vast fact that the added cost of employment of killing full time employment and sacking people full time as making people part-time for the same job and that is terrible for young people who graduated from school or university and major first-time job and find a job. if you notice employment
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statistics, 65% of jobs created last night were part-time jobs and 77% of that 65% were low-paid jobs. it is a dreadful picture for young people just graduating and taken the trouble and often the expense of going to hire education to find no jobs and obamacare killing jobs for the valley for the young. dagen: you make it sound like the country is going to hell in a handbasket, the market slightly of record highs, and this to the recent months people feel more optimistic about the housing market. >> most people feel optimistic, severely wounded soldiers in my military career and they get a big dose of hiring and that is what we have, this mammoth enormous injection of cash by the fed created out of nowhere
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and it is an experiment. markets are up, revenue is on companies that are falling and that is the real worry for the future and as far as the american people are concerned there is only one way america's greatness will be restored again for americans and made to feel good and that is to have strict term limits for congress. both parties in congress kill america's greatness and the only ways to have single term limits for them. dagen: good to see you, thank you so much, passionate as always. maybe a jolt for the bowls, that is what chevy is hoping. general motors cutting the price tag on the 2014 model of the electric car by $5,000 comes in now, sticker price for the 2014 model just under $35,000, factory in the full government tax credit and the final tally could be as low as $27,000 and you get some state tax credits
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depending on where you live. gold sales did fall 3% last month but they are a 9% so far this year. the price could help clear the way for the company's new cadillac e l r which will be based on the same technology. if you don't like the chevy volt trimmings you can get yourself another one. gm stock is down 2%. the price of the chevy volt not the only thing taking ed did. u.s. trade gap in june hitting malevolent 3.5 years. that is coming up, why we should care. chicago's financial mess can't get as bad as before, can it? jeff flock as a man's is on that and dennis kneale is back with the crossfire between cbs and time warner cable and here are some winners on the nasdaq. right now, 7 years of music is being streamed. a quarter million tweeters are tweeting.
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and 900 million dollars are changing hands online. th's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together.
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dagen: we told you about the price of the chevy volt going lower, the u.s. trade gap shrinking in june hitting its lowest level in 3-1/2 years, mark newton is here, this is the good thing, yes? >> it is a good thing but good news is bad news with regard to the market because it will happen that much sooner and could happen in september as a result of this data this morning, $34 billion is the biggest beat expectations since march of 2005. and increased energy production reducing reliance on foreign oil and increased shipments of capital goods but the market is certainly not reacting well to this, we are down 1/2%, commodities lower accounting for some of it but the dow,
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certainly good news economically speaking. dagen: it says go america. thank you, marc newton. the financial mess in detroit could repeat itself, could it? in chicago moody's recently downgraded the debt rating by 3 notches because largely because of pension obligations. same story we saw in detroit. jeff flock is in chicago with a lot more. jeff: sometimes in chicago, the editorial asking should chicago be the next detour? the new york times has a piece today, my answer having spent time in those cities is no but no time soon. as you point out the big question, take a look at governor quinn, he is in court at this hour. he has suspended the pay of the state legislature until that fixes the pension shortfall, $100 billion in the state and chicago has a piece of that. look at how chicago is like the joint. a big pension shortfall, they it
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is four pension funds have $20 billion of underfunding and the budget deficit in chicago which can manage $340 million, not huge but a deficit. they contribute more into the pension fund. will see where that goes. the good news about chicago and why i say no time soon chicago is a different tax base than before, very strong. the population is unlike before shrinking. chicago's is growing. also companies are moving into chicago. this is a great city. boeing relocated corporate headquarters, lot of tech coming into chicago and unlike they 28 this is a multi industry town. doesn't just hang its hat on one industry like detroit does with the auto industry. this is not a problem peculiar to detours or chicago. this is happening all across the
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country and it has to get worked out and has got to mean some people will take a hair cut and that is the politically difficult thing. dagen: i was going to say a lot of cities won't follow suit or followed the toys until it is clear they troy can reduce these pensions which is a fight that could eventually head all the way to the supreme court so they will try to avoid that but it is a clear path to cutting pensions than a lot more cities might be thinking about it i think. i love chicago. and detroit as well. thanks. jeff flock in chicago. endeavour ending source of headlines, more in the fight between cbs and time warner cable, calling time warner cable's latest proposal offered to cbs, and an empty gesture is what he called it. we are in the fourth day of the blackout and cities from new york they los angeles, dennis
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kneale, tell me more. dennis: they 4, three key markets, l.a. detroit, 3.2 million homes of of tumwater cable, cbs, days they have got. this was a fascinating proposal time warner cable proposed. why don't you go ahead and say what the charge is going to be? less than the one dollar a month per home. you want to raise the price, collect -- tell everybody what the price is that no general loader, not cbs or espn, wants cable subscribers to vote and decide to pay $5 a month for espn, do i want to pay $1.25 for cbs? cbs dismissed it as a sham right away but this morning comes the formal letter, saying, quote, i was surprised to get your letter in the letter to time warner cable, particularly since i haven't spoken to you in more than a week and goes on to say we have not heard from anybody at time warner cable discussing
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anything at all and despite your public statements to the contrary, that is not negotiating, that is grandstanding and time warner cable lashing back with an e-mail this morning saying, quote, our efforts to get cbs programming back for our customers are sincere. we are disappointed in their lack of responsiveness. the thing both sides should be worrying about hisscustomers will save a pox on both your houses. they're going beyond hurting each other but her their own customers. time warner cable refusing an average keep showtime on anywhere when showtime offered no, for get and the cbs shutting down shows at cbs.com not just in the free-market spot all time warner cable markets. that is un-american. dagen: it is the american. you got to get an antenna and put it up. dennis: 95%. dagen: it is not very expensive. if you want your cbs, get yourself an antenna. dennis: a smelly transmission back to the uhf days. dagen: i have one and it is not that bad.
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if you are desperate and it is on showtime you are coming up. dennis: you want a little more than anyone should put up with. dagen: we would not have you on twice this hour if we had known that. thank you so much. dennis and cheryl coming of going behind the headlines why the washington post sold itself and why the grand family sold out to jeff besos. and you don't want to miss this, taco bell about to take waffle tacos nationwide. we look at fast-food breakfast the way it looks on one of those things from saturday night live. more on markets now. [ male announcer ] these days, a small business can save by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male annncer ] the best thing to share? a data plan. at&t mobile share for business.
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bounce is great because the freshness lasts r weeks in the drawer. why can't everything stay fresh that long? [ male announcer ] how do you get your bounce? [ man ] lasting freshness. dennis: i'm dennis kneale. cheryl: i'm cheryl casone.
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taper talk, today could be the biggest decline in six weeks for the dow, but a guest says ben bernanke will not back away from bond buying until the rights moment, and investors reap rewards. dennis: media beat is hot, war between cbs and time warner cable getting personal as their chief executives exchange snipes to hurt each other's feelings. shares of washington post sharing after bezos buys the paper. taking it off the hands of stockholders, which is why the stock is up. sad, behind the headlines ahead. cheryl: president obama with another plan to stabilize and grow the housing market. rich edson's live at the white house with the plan coming up. feds going too far to punishme. apple? my thoughts ahead, and we want to hear from you. tweet us. cheryl: at the top of the hour, down 91 points, off session
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lows, fed tapering talk, several fed presidents said that we could see bond buying lessen by as early as september, and then, of course, the dow could be facing the largest decline in six weeks, but adam on the floor of the new york stock exchange, we have to be down 125 points to do so. >> we are off the sessions lows of the morning, as you pointed out, cherls. one of the things traders are talking about with regards to the dow being down is the trade gap. you know, the trade gap deficit was better than had been expected, so good news on wall street turns into bad news because that means the fed most likely, according to mark newton, the fed would be pulling back, taper. you know, there's winners today in the dow, not many, disney, png, pfizer. disney earnings after the bell, see how they did with the movie "the lone ranger," i think that's disney. back to you. dennis: yes it is, yes it is. enough taper talk.
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the next guest says the only threat to the bull market now is the central bank's head man himself, ben bernanke. johnings you say that if ben bernanke takes the foot off the gas, this already slow economy could tank? >> that is correct. look, fearing the -- forget the unemployment, all that stuff. you know, they will not take the foot off the gas until we see back-to-back 3% gdp or better, and i appreciate they are going to revise the way they calculate gdp, but as it stands right now, until that happens, you know, ben bernanke's in the position of feeding an alligator bread crumbs, and when you do that, don't stop. i think that until we see back-to-back 33% gdp, no chance of it happening, and so that is our view on it. you -- dennis: you have been right and early on bullish calls on stock and pointed out the return on
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some corporate bonds would be almost even with government bonds because corporates are a better risk. you have bees pressing here. this market rise, though, is it because, simply, of the fed to have hot air or the economy is better and stocks predict that? >> that's a great question. you know, i think it's -- it's the, you know, back to what we said, you know, in line with betting on corporates rather than credits, and i'd say that's true with stocks too. you know, buying stocks is just a better bet overall, and in addition to that, corporations, you know, unlike governments, have figured out how to trim the costs and run leaner, meaner machines, and i think that's what you are seeing right now is just that efficiency in addition with the low dollar, you know, beginning to, you know, come to the fore front. i think you're going to see inflation, talking about currency inflation, and commodities begin in stocks, but rise up here, so i think that --
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i think those two things are driving the stock market. dennis: okay. there's been a lot of job cuts. you know, interesting numbers, maybe this is a good thing for the economy. tell us about the government jobs, 14% of the total work force? >> well, okay, since 2010, in a better number, the government calls it transfer of payments. i call it handouts. what that means is since 2010, we've gone from 14% of wage growth to 20% is just strictly handouts. that is a real dampener because it doesn't add anything to gdp. to put it in dollar terms, that's 1.2 trillion a year that they are just, you know, you know, giving away in social security, welfare payments, up employment payments, those kinds of things. dennis: that's money people spend. why does that count and help for gdp >> >> the problem is it doesn't produce goods and services, yes, they buy them, but it's a one for one.
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it's not building a television or it's not, you know, it's not starting a business and creating jobs. it's just simply a one for one, so give them the money, they spend it. it's a one for one transaction. dennis: plus, you take the dollar from someone else to give it to the other person to pend is. appreciate it. >> correct. thank you, dennis. cheryl: president obama touting a new plan for the housing market in a speech this afternoon, but he might evoke old language when it comes to the feelings about fannie and freddie. live at the white house, rich, is it the same rhetoric heard before from the white house on housing? >> this is a proposal, cheryl, the white house put out a couple years ago giving a number of options. the white house this time around nare low -- narrowed the options down. it's a framework, not a specific proposal, but one that mirrors a little bit what's going on in the house and senate now. look at what the president's going to propose today, much of what we saw before, but a
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narrowed down version, gradually replace fannie and freddie, reduce fha loan limits, get regulatory clarity with underwriting standards, the loans the federal government should allow or cut mothers should know what they get into, and the white house says we have to overhaul the immigration system because recent immigrants to the country are more likely to buy houses. there's another proposal, this one in the house, cleared the house financial services committee, the chairman of all this has a proposal out, and the white house saying to that one that they have real concerns and don't believe that it meets all the goals that the president will lay out today, and one analyst says, though, even though there's concerns about the house proposal, the chances of a fannie and freddy overhaul are as good as they've ever been. >> this is the critical window for action, and if you can see progress in the senate in the fall, the odds go up
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dramatically that we could actually get a housing finance reform bill done during president obama's tenure. that is something people would not have said six months ago. >> the white house seems a lot closer to what's going on in the senate. there's one republican, one democrat, the corker-warner bill, as it's known, that particular proposal replaces fannie and freddie with a new entity that requires more private capital than fannie and freddie ever did. back to you. cheryl: all right. get rid of fannie and freddy sense we spent billions on them in taxpayer dollars. good idea. thank you, rich. >> thanks. dennis: what's bugging me? government overreach in the apple e-books case. a federal judge found apple guilty of conspiring with five publishers to fix prices in the e-book market. nevermind that e-book prices went down, not up, and apple, itself, has just a single digit share, and amazon that has 65%.
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a stunning level of government intryings into apple's business proposing a watchdog on apple for ten years, monitoring what books apple sells, and at what prices. first amendment, anyone? they have not been accused in other businesses, they want oversight in music, movies, iteen, and app stores, so heavy handed it's like swatting a gnat with a nuke. what justice is doing here is making an example of apple for all other companies it targets, and the message is, when we come after you, you better settle. the five publishers settled, paid $30 million a piece in find, and are done with it. apple fought, lost, and now it must be humiliated and publicly flogged for the next ten years. your turn to weigh in. tweet me. are the feds going too far to punish apple for fighting, not settling? your comments coming up. cheryl? cheryl: a huge response already
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on twitter. people want in on this, tweet now. dennis: that's right, be famous. cheryl: yeah, here's something that may bug dietitians, and while anybody, this is just trying to lose a few pounds, taco bell about to take the waffle taco, there's syrup on this, bacon, and eggs. the fast food breakfast war, trying to go nationwide, looks good. dennis: ink michelle obama would be upset. bezos bought the paper, taking it out of the stockholders' hands. behind the headlines on that ahead. cheryl: i want to look at the energy markets with doil own at 105, and brent and ethanol coming up later in the show with phil flynn. ♪
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look at ibm, they are the biggest drag on the dow. real quick, story credit downgrading the stock from underperform down to 100 to 175. stock at 191, but here's what matters most, new to all of us. look at the impact that ibm is having on the dow now, down 29 points. give you context what that means, the next biggest loser on the dow is hp. look at this, points-wise, it's just three points on the dow. that will show you the impact that downgrade on ibm is having right now from credit squeeze on the dow 30. overall, also, talk about weak mainframes, that's, what, 1985, everyone? i want to show you that, using this technology more and more here at fox business, but let's bring in adam from the floor. big movers today on the market? >> not in a good way for jcpenney, tobies today set new lows for the last 52 # weeks, right now, a new low,
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disappointed in the new chief marketer yesterday. the woman from kraft foods, but investors are not liking the stock today. year to date, jcpenney down 34%, again, a new 52-week low. dell, carl's second in line to michael dell, the largest shareholder at dell, bought 4 million more shares, dell trading up today, not doing too bad, just under a percent higherment wac -- higher. back to you. cheryl: thank you so much, adam. dennis: making money with charles payne, a couple companies to push europe in the right direction. there's going where people left in the dead. >> guys, for the last couple years, if they had, like, great exposure to europe, it was off the list. focus on lat tin america, asia pacific. last week, week before that, i'm starting to see europe doing better.
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in the last week, three supports, two dead that blew me away. first a michael kors, european sales were up 144%, same store sales up 56%. there's no way in the world they beat. i mean, that's amazing stuff. that's huge. dennis: not just stronger u.s. dollar than a year ago? that helps; right? >> for a multinational, they want a weak dollar. you get the local currency and exchange that for more dollars. dennis: so to spite it? cheryl: if you look the the retail sector now, downgrades, ect., ect., that stock is, god, how much is it up the last ye >> i don't know. cheryl: triple digits. >> at least six or seven times, once last week, and i will tell you it's been easy for me, they've been eating coach's lunch. cheryl: yeah. >> europe is up, okay, that's a retailer, ktsh, they are headquartered in phoenix, but
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it's an indian company, and i'm upset. i gave this to the best clients, spooked from it because they could not get smart people here to do outsourcing. it's technology based stuff, and because of the immigration policy, i gave up, it's up now 20% since then. again, here's the thing, take out u.k., europe up 54%. that's huge. okay. we got a retailer. we got a tech company, outsourcer. burger king. burger king same store sales in america were done. latin america up 5%, asia up 7%, but europe, again, up over 7%. same store sales. we got three completely different industries, american companies saying sales turn in europe. i have not done anything with this yet, but i wanted to share it because this might -- this is basis for investments going forward. cheryl: coming out of the recession in europe, all signs and data points out of the recession. there's manufacturing today in germany up, like, 3%, supposed
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to be up a fraction or something like that. you're on it. >> i'm going to work on it, but i wanted to share it. dennis: could be time to buy. >> you got it. cheryl: buying broadway, ahead, a company trying to make investments available for you, and a theater, a broadway show a good bet for your portfolio? >> u.s. businessmen, citizens, personnel evacuated from yemen. the terror threat ahead on your "fox news minute," but first -- cheryl: the u.s. currency and how they are fairing against the dollar. ♪ [ male announc ] at his current pace,
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>> this is your fox news minute. sources telling fox news that al-qaeda could be planning attacks on other offices, foreign offices, infrrstructure, and organizations in yemen in addition to the american embassy there. today, the state department ordered most embassy personnel out of yemen and also urged all u.s. citizens to leave the country. president george w. bush underwent a medical procedure this morning. the 43rd president of the united
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states had a stint incerted to clear a blocked artery. the block cartilage was discovered yesterday during the 67-year-old former president's annual physical. jurors in the trial of james "whitey" bulger begin deliberations today. the reputed crime boss is accused of arranging or committing 19 murders in two decades. the judge learned they reenforced the jury instructions saying they have to find the defendant guilty beyond a reasonable doubt. the jury has 32 counts to consider. those are your news headlines here in the fox business network. back to cheryl. cheryl: all right, have a musical family, she's going to like the next segment because this is broadway meets wall street. my next guest company is combining the two to pay, e guess, theatrical money ball. it can help protect your portfolio. joining me is studio president, wade, welcome. >> thank you.
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cheryl: you've been a crowd funding investor in film bringing that model to broadway. >> exactly. cheryl: how's it work, exactly? >> well, for our crowd funding, it's all from affluent individuals. they can withstand risks of it, but -- cheryl: someone who makes 200,000 and a above or north of a million? something like that? >> really in the multiples of millions and up. cheryl: okay. >> giving them the great opportunity, it's a manage mitigated risk process that we really pioneered in film. it's an end-to-end solution. our first broughtway production opens on broadway on thursday night. cheryl: that's first day, we should mention, and we have clips from the show as well, and i saw the show, it's cute. this is usually, i think, what, $5 million it takes to open up a broadway show. is that still about the right number? >> this is about seven. most today tyke 12-16. cheryl: okay. you got, it's a well-known talent in this, people who have done television. >> the male lead, and, you know,
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really great producers, junk yard dog, the tony award winning producers of "memphis". cheryl: some shows are megahits and you get money back right away, and the road show happens, the tour, and everybody's just, you know, glad handing. only one in five broadway shows actually make money these days. how do you, you know, take that investor and say that we can assure you this is going to be a good investment opportunity for you? >> well, you can't guarantee it. that's why we always put everything in a slate that's diversified with film and broadway, and one of the biggest benefits is you're picking shows that have a moderate budget, have a great cast, has something you sneak to say. this is a real crowd pleaser. what it's done is it tests very high in females, obviously, and also males. cheryl: think about, what,
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60-something percent of broadway theater goers are female, exactly. >> right. cheryl: back to "rent," for example, the original investors made a 675% return. are investors realistic they may -- if the play is not a hit, yours is, but if it's not, for example, they lose investments. >> the numbers are realistic that we provide to them, so we start at returns in the mid-30s, up to several times their investment, so it's really, you know, we need to set their expectations up front. you know, the show looks great. it's -- cheryl: average investment is 20-25 grand, but you're above that; correct? your threshold is higher -- this is a members' only club, if you will. i have to be cool to get into the club. >> they purchase a membership, and, also, minimum investments in slates are 150,000 and up. cheryl: okay. what's the time frame for roi on this in >> it's quick on
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broadway. it's a neat thing. you start gaining return on investment rapidly, so we'll start distributing ticket sales in q11, -- q1. there's a hold back, and then generate income. it's previewed with advanced sales almost 30% the cost of the show, it's going really well. cheryl: this model, though, you live in los angeles, you're a hollywood guy, you're a film guy, but this is a new model for broadway. what makes you so confident that this same model for film is going to work in the theater. >> basics in film is essential. we work with a-level producers, and we provide a managed risk opportunity from end to end so that every project in film gets seen in theaters. same way for the broadway. you know, we already have it. it's opening on broadway. there's so many hundreds of
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broadway productions that never get to where we're going to be on thursday night. cheryl: on 48th street, up the street from this studio. >> yeah, yeah. cheryl: house is packed. >> yeah. cheryl: congratulations to you and investors. >> and congratulations to the team and everyone, they are great, and everyone's going to enjoy it tremendously. cheryl: we'll sphee it changes the mote eel. >> excellent, thank you very much. cheryl: dennis? dennis: shares of herbal life, a 52-week high, recently down today, trading at $60, doing well despite the drama in new acquisitions of insider trading. meanwhile, dell had a runup on friday as the battle to take the company private continues. big companies with big news, and carl icahn plays a role in both sitting down with liz today for a fox business exclusive. tune into "after the bell" at 4 p.m. eastern, only on fox
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business. cheryl: the war between cbs and time warner cable getting personnel as their chef executives exchange some frit nasty swipes. dennis has that for you. dennis: what's bugging me? feds going too far to punish apple for fighting, not settling the e-bookcase? tweet me. your answers coming up. cheryl: taco bell about to take the waffle taco nationwide. do you want to eat this? dennis: ha-ha! cheryl: you might have the option. we'll be back. ♪
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with the bounce dryer bar, my clothes will be fresh out of the drawer for weeks. and it's great when things last a long time. well...most things. [ male announcer ] how do you get your bounce? [ woman ] can't regret fresh. cheryl: 30 past the hour, stocks every 15 minutes, ad. we have the bigger movers, adam?
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>> look at yum, check it out. yum owned taco bell, and they are expanding its waffle tacos. imagine a waffle in the shape of a taco, all things doctor says you shouldn't eat in the middle, but it tastes good. they are launching breakfast nationally atta koa bell. yum brands struggleing to go positive. this morning, down half a percent, trading near the 52-week high at $74, they are at 74 21. if you like waffles, go for it. cheryl, you're a health nut, maybe if there was pinot there, you'd be there. cheryl: good point, i love a good breakfast burrito, but this is interesting. we have the taco story here on the show when it came out in may. see what it got. >> give me an egg sandwich from a deli any day.
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dennis: look at the massive forarms. cheryl: that's all you got? again den i'll try one. that's no joke. cbs shows remain blacked out on time warner cable systems in three of theically's biggest markets and a new proposal by time warner's chief was shot down by the ceo calling it a sham. the feud moving into the fourth straight day, no end in sight, and joining us now, multichannel news' editor in chief. mark, thanks for being with us. you're a friend of mine, worked at the journal years ago, followed cable for two decades, assess this fight between others, operator and channels. >> it's one of the worst in terms of vie tree yal, the mud slinging is bad in the last few days, especially yesterday and today. rst time a broadcast network has gone dark, but first time cbs has gone
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dark, and, you know, back in 2010, it was fox and cable vision, and that lasted two weeks. that lasted until the first pitch of the third game of the world series. there was pressure there. dennis: this goes longer? >> you know, let's wait and see. i mean, my bet is this goes two weeks. you know, right now, you've got preseason games this month, starting on the nfl. you got the season starting in september. there's a lot of pressure on these guys to make a deal. dennis: okay. time warner cable, yesterday, a bold proposal, it said, hey, hey, cbs, tell you what, sell yourself for any price you want to the home subscribers, we collect the fee. cbs calmed it a sham. why is it a controversial idea? consumers like it. >> well, look, time warner is no more going to go to ala cart than the man on the moon. dennis: time warner didn't mean it? was not sip sere? >> i think they were sincere offering cbs to prove a point, but be clear, this is not about
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the consumer. this is about them. okay? dennis: the two big companies. >> to make it out this is some noble fight for consumers is utter hogwash. dennis: right. >> people see through it. don't forget, dennis, time warner kale its stock showed in the last 18 months, trading at the 52-week high. cbs is the number one network, okay? they just came off a record year. dennis: their stock's up in the last year. >> this is about one thing, dividing profits. dennis: right, dividing the profits. who has more to lose? they are looking bad here hurting the customers. >> right. we, look, it's a national pastime to hate your cable company. it goes to the guys delivering the signal, but there's a lot to lose. concept fees for cbs, which the fees that are in contest right now, they got advertising fees, tens of millions of dollars. time warner cable is already
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losing video subscribers, and every quarter, this is only alien ate them. dennis: can't lose the number one network, can they? >> can't afford to lose subscribers. that's the problem they have ring, a fire they are having trouble putting out. they alienate more people. dennis: one last bold prediction, mark, which side wins? cbs or time warner cable? >> they both lose. they both lose. one other thing. they have a bull horn to the federal government saying come regulate us, and they don't -- dennis: they are risking it. the feds will mess it up. thanks for being with us today. great hit, mark, appreciate it. >> thank you. cheryl: okay. the financial mess in detroit could be repeating itself in chicago. moody's downgraded the debt rating by three notches over debt and pension obligations, and that's the same story we saw in detroit, by the way, jeff flock is in chicago with more
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details on this story today, jeff? >> well, you know, it's funny, cheryl, you say, what the hell are you talking about? chicago and detroit? i spent time in both places, anybody who have been to those places say chicago's nothing like detroit, and look at the reasons that it actually doesn't make sense they would be on the same path. chicago, different city than detroit in that there's a strong tax base, a growing population. detroit's population, you know, famously has slunk dramatically. there's companies moving into town, boeing recently relocated its corporate headquarters here, and it's also a multiindustry city, not like detroit with a single industry that drives the town, but here's how they are the same. pensions, it comes down to pensions. municipal pensions. chicago has four pension funds, short about $20 billion. they got a budget deficit of about three-quarters of a million dollars. moody's downgrade the the city, and it's not going to get better as time goes on.
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in 2015, a new state law requires even more to be put into the pension funds, and that could cause property tax increase of maybe a hundred to 150%. at this hour, the governor is in court because he said unless you fix the pension problem in illinois and in chicago, you don't get paid, state legislature. they are in court now suing him trying to get their pay restored, but he says, hey, you don't do your job, you don't get paid. this is the biggest problem that we will ever face, says the governor. cheryl: hopefully he won't have the population drain they saw in detroit. i can't see that happening in chicago. hope not. jeff flock. >> it's a great city. cheryl: it was. >> so was detroit, but there you go, you know, kind of crazy. cheryl: good point, jeff, thank you so much, jeff. >> thanks, cheryl. cheryl: it is the fox business summertime showdown. we started with eight stock pickers. now, we're down to five.
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revealing the results of the month long stock plays this friday, we say good buy to either david trainer or scott martin. >> i'm scott martin of united advisers. i will bet david trainer one -- no, no, no, wait, two deep dish chicago style pizzas with any topping he wants that my stock pick outperforms him. in fact, i might deliver them myself to ensure they get there safely. see you friday! >> this is david trainer, ceo of new constructs, i'm so confident that the diligence that my firm does in the footnotes gives us the best data and models in the companies we cover, that i'm willing to sing, "i'm a loser baby" k by beck at the cafe in nashville if my picks do not beat scott's. cheryl: that's right. david will enjoy two pizzas or face humiliation singing "loser" in an iconic bar in nashville.
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if he loses, we'll send a camera to tape the song. don't miss the somehow dop noon each time on friday. dennis: that was great stuff. can't wait to see that. the middle of summer, and gas prices are lower. we're going to fill it up with phil flin ahead at the cme. cheryl: recycling old military gear and putting veterans to work. don't miss the cofounder of sword and plow. he's joining us next. ♪ [ male announcer ] these days, a small business can save by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...officspace. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share moresave more. at&t mobile share for business.
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astrazeneca may be able to help. ♪ >> this is requester fox business brief. homeowners doing a better job of making mortgage payments, according to credit reporting agency, transunion, the percentage of mortgage two months behind fell to 4.09% in the second quarter. that's compared to 5.49% year over year. that's the lowest level in five years. u.s. trade deficit for june narrowed sharply to 34.22 billion. that's a 22.4% decline for may, smallest deficit since october of 2009. analysts expected the deficit to decrease, but only by 43.5 billion. gm hoping a $5,000 price cut brings a sale search to the volt, bringing the car's price under $35,000. that's a 12% less than last year's volt. that's the latest from the fox
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>> our next guests put their spin on fashion while resickling old military gear and putting veterans to work. oh, and, by the way, the ceo is currently serving in afghanistan. i sat down with the co-founder and coo to see how she and her sister, emily, got it going. >> we're the prat daughters of a army colonel in the military for 30 years, our uncle in the marines, cousin in the knave veterans. we saw the materials growing up, but materials discarded, and we also -- we also noticed, you know, a lot of the challenges that veterans and, you know, soldiers were facing when they came back from being overseas. cheryl: your sister is not here because she's in afghanistan right now. >> yeah, uh-huh, yes. emily, right now, deployed in
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afghanistan. she's been over there for two months. we miss her every day, but we couldn't be more proud of her. cheryl: when did you finally decide that you wanted to make bags, and not only bags, but repurposed military tents and military cloth into fashion, a fashion accessory? who thinks of this? >> it was my sister, so, last year, sheafs listening to a presentation held by the middle berry social entrepreneurship talking about how startups were recycling goods and turning them into something beautiful, and she thought what i see on a daily basis and what can atransform into a beautiful product? with a really strong and powerful mission, and that's where the idea hatched, and since then, you know, it's amazing how much everything has progressed due to the strong team, and all the help from a lot of organizations. >> what's amazing is you have been going to the competitions,
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and what are you, 23? >> emily's 23, i'm 25 years old. cheryl: just baby ease. you went to the competitions, and you, dell, dell had a big competition, you won that, went to harvard, won that. you have business titans now mentoring you, teaching you how to launch a company. >> contactually. i mean, cheryl, it's been amazing the amounts of support we've gotten from dow social innovation lab, mass challenge, all organizations, middleberry college gave us such a strong start. we're so grateful and overwhelmed with gratitude how much people helped us. >> funded through kick starter? >> the official start. cheryl: amazing. i want to show the bags, show everyone what this is. >> of course. cheryl: they a attractive bags. >> thank you. >> this is all made from repurposed military cloth. are they giving it -- where are you getting the materials from? >> sure. we acquired the materials through a number of platforms, some through donations.
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we've been working with some praises to purchase the materials prior to it being, you know, burned or buried, but right now, we repurposed 5,000 pounds of military surplus by the fulfillment of kick starter, close to 10,000 pounds. >> the people making these are -- >> yeah, we work and employee veterans, wog with as many veterans as possible and work with manufacturers that employ veterans, but also have veterans on the team and work with companies and nonprofits and ask them to scale how much they're, you know, their employment in hiring veterans as we have, you know, demand for the plough products. cheryl: we thank betsy nunez and the team at sword and pluogh. a greated great idea. >> mark, ugly day for the markets, where do we go from
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here? >> well, still looks like there's a couple more days of selling, dennis, but we can't make too much yet. tapering is back on the table, given the numbers this morning with the deficit down to $34 billion, and i should mention that commodities have led a lot of this decline today, a lot of the commodity sectors like industrials, materials, after nine of 11 days down responsible for the weakness, and there's been pullback in the u.s. dollar, but still have to make it below 16 and 17, 7 #% in the six week's time. logical to have a day or two of pullback, and stocks don't follow economic data. the data was good, but it's not necessary stocks go up. we have to take a breather like today. dennis: be not afraid. thank you very much. >> my pleasure. cheryl: gasoline hitting a four-week low, to the trading pits of the cme, and phil flynn, phil? >> could be the end of ren
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sanity. that was the mandate refiners had to put in the gasoline, but we're not using as much gasoline so they bought credits driving prices up to record highs, they are collapses today bringing down prices because the epa blippinged. they are allowing greater flexibility in incorporating the mandates for ethanol into gasoline, and at the same time, they are going to extend the deadline into next year to meet the mandates reconsidering next yier how much ethanol we're going to use. a big win for the refiners and the ethanol producers and a big win at the pump. down today big, 2.8 cents, back to you. cheryl: look at california how woal it works. thanks, phil, appreciate it. >> thank you, bye. dennis: today's media minute, more on amazon's jeff bezos buying the washington post.
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stocks up as much as 6% earlier today, i don't know where it's at now, on news he buys the paper and other properties for a quarter billion dares or 1 #% of the amazon founder's net worth. understand how sad it is. the stock's up because the company is shedding the name sake where i interned in 1979. is it a bold vision or a fool's esh rand? down a decade to half a million copies. revenues down 31%. we should have a chart on this. lost more than 50 million dollars last year, down from a profit above a hundred million dollars a decade ago. bezos promises to experiment and reinvent, although terms of the deal requires he leave in place at the same people at the top including the current publisher and the ceo, the granddaughter of the late newspaper legend of watergate family. bezos insists he will not interfere in day-to-day operations, and begin the state
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newspapers are in, i hope he does. cheryl: shares up 44%. amazon's flat, there you go. salad prices about to get much more expensive. why coming up in the west coast minute. dennis: what's bugging me? the feds going too far to funnish apple for fighting, not settling in the case? your responses coming up.
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cheryl: time for the "west coast minute," the san fransisco bay area may have a second transit strike on its hands. this time, the bus drivers, managers, and clerical workers. if that happens, 181,000 commuters could be affected. a strike by bart workers on hold
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after governor brown intervened at the 11th hour on sunday. hawaii has the most expensive housing costs in the nation, and, in fact, wherever you live, if you bought a home, you may have noticed closing costs were rather high. according to bank rate, closing costs up 6% to more than $2400 against last year, but in hawaii? that number on average, $2919 that makes them lead the nation. alaska, number two. finally, letttce prices jumping. supply strains leaving the junior college vie going for double what it did a year ago. reason? bad weather decimated so many crops in the eastern part of the united states that california growers are now depended on to supply the east and west can't keep up with that national demand. that is your west coast minute. dennis: what's bugging me? are the feds going too far to punish apple? here's responses.
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dan says, why should apple feel bond to do what the government says? who are they to tell apple what to do? where's the moral authority. dan is a pal of mine, he's being ironic, but meaning apple should stop whining. apple fed is another case of the administration punishing success and innovation. the feds taint everything they touch. cheryl: frank sinatra sang about the city of chicago as a town, but did he mean to the ling on the brink? the scary reality as the city struggles with a huge pension crisis. dennis: sour grapes in california, the troubles facing wineries there, and what it means for the next glass of vino. i join a fan, lori rothman who really likes vinos, next hour. cheryl: vinos' good. my mantra?
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always go the extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal
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dennis: and dennis kneale. lori: hi lori rothman. the debt chairs are blowing in the windy city, pension obligations dragging the nation's third largest city down in an ocean of debt. steve malanga shows us the money mess lying beneath chicago's polk for money. dennis: a president headed to arizona, at the center of the housing bust but wiped out $7 trillion in homeowner equity. mr. obama have another plan to stabilize and boost the housing market. lori: newspapers, a new status symbol for billion is looking to flaunt their wealth. amazon's jeff bezos be with the washington post. dennis: the fight with george soros and carl icahn ran the. charlie gasparino as the long and short. time for stocks as we do every 15 minutes left head to the floor of the stock exchange, adam

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